How does HydroDog use the rebates received from Groomer's Choice and Evan's Apparel?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We have negotiated agreements with Groomer's Choice and Evan's Apparel whereby each will pay us a 15% rebate on purchases made by our franchisees. These rebates will be retained by us to offset our costs of operating the franchise system and will not be shared with franchisees. However, as of the issuance date of this disclosure document and for our fiscal year 2024, no rebate amounts have been paid to us under these agreements, and we and our affiliates had not established any other rebate programs.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has negotiated agreements with Groomer's Choice and Evan's Apparel, where they will pay Hydrodog a 15% rebate on purchases made by Hydrodog franchisees. These rebates are retained by Hydrodog to offset the costs of operating the franchise system. The FDD specifies that these rebates will not be shared with franchisees.
As of the issuance date of the 2025 FDD and for the fiscal year 2024, no rebate amounts had been paid to Hydrodog under these agreements, and Hydrodog and its affiliates had not established any other rebate programs. This means that while the agreements are in place, Hydrodog had not yet received any financial benefit from them at the time the disclosure document was prepared.
For a prospective franchisee, this means that while Hydrodog benefits from these negotiated rebates, the individual franchisee does not directly receive any portion of these funds. The rebates are used to support the overall franchise system, which could indirectly benefit franchisees through improved services or reduced franchise fees in the long run. However, there is no guarantee of such benefits, and franchisees should be aware that these rebates are not shared with them directly.